Fleet Cards - Tool Or Tale?
Many gas companies offer a fleet gas card. This is a credit card exclusively for purchases of gasoline. It a credit line provided by oil companies to clients who own a fleet or a group of cars used in their businesses. At first, it may seem like a large investment for a company but upon better understanding, the fleet card is a tool to help the business to have more resources available at less the outlay. Here are some of the advantages an entrepreneur can avail of by subscribing to a fleet gas card.
1) Discounted prices and rebates
A fleet card has the same provisions of an ordinary credit card. One has to be very particular to the terms and conditions of the fleet card. One has to find out the interest rates imposable. In addition, one can even haggle for lowered rates and use volume as advantage. Since it is like a normal credit card, one earns rebates on purchases made on the card. Thus one earns twice on the purchases made, first by the discount on the gasoline purchased and the second is by the rebates earned. This is one of the best schemes available to the business in pursuing its objectives.
2) Payment schemes instead of upfront cost
By having the cost of transportation deferred, money can actually be used for other ways to expand the business or improve the business. This helps the business because money can be used to operate the business instead of paying an upfront gasoline expenses. Besides, one can budget payments, by paying minimum amounts over time. This allows for more elbowroom for the business finances. Thus, it is better for a business to use fleet cards for transportation expenses. The money owed on the card can actually be earned first before needing payment.
3) Verifiable gasoline costs
If the business needs a way to verify gasoline costs of the employees is through use of the fleet card. This is the best way to provide gasoline allowances for company issued vehicles without actual cash changing hands. In addition, management is able to track the travels of its employees in two ways: the distance traveled by the car and/or verifying where gas purchases were made on the fleet card. Thus, using the fleet card as a tool for management can make verifying gas purchases.
In fine, fleet cards is a tool to assist the business in achieving its plans. The card, through its purchase discounts and rebates earned, can actually provide savings for the business. Furthermore, the deferred payment scheme of credit cards can be availed of with the fleet card. Finally, management can monitor business activity of its personnel by verifying the gasoline costs on the card issued to its personnel. These taken together provide the fleet card holder the competitive advantage regarding the transportation expenses of the business. And in the end, the business earns on the fleet card’s proper use and the earnings can be used for business expansion and improvement.
See: Fleet Cards
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